Dublin at number three in world for largest luxury home prices fall
DUBLIN was the world's third worst-performing property market last year with only Dubai and the Algarve seeing bigger price drops, according to a survey of high-end property prices around the planet.
The survey shows property prices at the upper end of the market declined 25pc in Dublin, 30pc in the western Algarve and 45pc in Dubai.
In Asia, many of the leading cities showed massive price growth with Shanghai prices jumping 52pc and Hong Kong rising 40.5pc. Other prime city locations also saw price rises with London chalking up a 6.1pc and Washington DC prices growing 5.6pc, according to the latest Knight Frank World Cities Survey.
"The global market for prime residential property polarised during 2009. While some Asian cities saw phenomenal growth as China recovered strongly from the global recession, most locations around the world recorded price falls.
"The hardest hit were those such as Dubai and Dublin that really soared during the height of the property boom that preceded the credit crunch," said Liam Bailey, head of residential research, Knight Frank.
London has surrendered its ranking as the world's best city for the rich to New York following a tax on bonuses, according to the report, which also notes that government intervention in the financial markets is increasingly turning cities such as Washington and Beijing into important financial centres as well as political hubs.
Property accounts for one-third of the investment portfolios of wealthy investors, according to the report. Over 70pc believe 2010 will be a good year to invest in property, with half predicting residential property will be the sector's top performer.
A separate report on commercial property by Marie Hunt of Dublin-based CB Richard Ellis also noted that problems in the commercial property sector are not limited to Ireland. Ms Hunt predicted that commercial property in prime areas is likely to rebound but property located in secondary areas will struggle.
"Secondary property will struggle to see significant capital value appreciation in the near- or even medium-term," she said in a report.